Harris Corp

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HRS : NYSE : Technology
$115.19 -0.04 | -0.035%
Today's Range: 114.92 - 115.64
Avg. Daily Volume: 881700.0
07/27/17 - 10:48 AM ET

Financial Analysis


HARRIS CORP's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. HARRIS CORP has weak liquidity. Currently, the Quick Ratio is 0.63 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 13.42% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)1489.01550.0
EBITDA ($mil)349.0358.0
EBIT ($mil)283.0293.0
Net Income ($mil)85.0168.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)302.0335.0
Total Assets ($mil)11107.011900.0
Total Debt ($mil)4213.04793.0
Equity ($mil)2914.03366.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin39.6939.1
EBITDA Margin23.4323.09
Operating Margin19.0118.9
Sales Turnover0.560.5
Return on Assets5.230.9
Return on Equity21.7512.26
Debt Q3 FY17 Q3 FY16
Current Ratio1.661.42
Debt/Capital0.590.59
Interest Expense42.046.0
Interest Coverage6.746.37


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)121.74124.48
Div / share0.530.5
EPS1.311.26
Book value / share23.9427.04
Institutional Own % n/a n/a
Avg Daily Volume891812.0819171.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.53 for the Communications Equipment industry and a discount compared to the S&P 500 average of 24.66. Conducting a second comparison, its price-to-book ratio of 4.77 indicates a significant premium versus the S&P 500 average of 3.07 and a premium versus the industry average of 3.46. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, HARRIS CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
HRS 22.66 Peers 24.53   HRS 15.53 Peers 15.04

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

HRS is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

HRS is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
HRS 18.88 Peers 21.77   HRS 0.22 Peers 1.09

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

HRS is trading at a valuation on par with its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

HRS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
HRS 4.77 Peers 3.46   HRS 56.03 Peers 10.25

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

HRS is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

HRS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
HRS 2.22 Peers 3.07   HRS 4.47 Peers 11.02

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

HRS is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

HRS significantly trails its peers on the basis of sales growth

 

 

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